# FX Weekly Summary (Brazil Issue)

> The week's FX drivers were expectations of faster US interest-rate increases after an FOMC hike and updated projections, plus fiscal and political risk in Brazil tied to fuel-pricing moves. Offsetting factors were a higher Selic that supports the real and easing Covid lockdowns in China that could revive Chinese demand for Brazilian exports.

- Date: 2022-06-10 · published 2022-06-10T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/11314-fx-weekly-summary-brazil-issue
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar and higher Brazilian risk premiums push the USD/BRL rate up, which raises Brazil's local-currency returns on exports such as soybeans, corn and meal. The China demand recovery is a supportive factor for these export prices.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2022-06-13 | 5 | +6.3% | 3.2 | Expectations of faster US rate hikes after the FOMC and Brazilian fiscal and political risk over fuel pricing drove dollar demand and BRL weakness during the move window, partly offset by a higher Selic. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-07-29 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/40695-fx-weekly-summary-brazil-issue.md) | +0.0% | -1.9% |
| USDBRL | 2024-08-26 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/29020-fx-weekly-summary-brazil-issue.md) | +2.0% | +0.5% |
| USDBRL | 2022-10-03 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/7983-fx-weekly-summary-brazil-issue.md) | -3.4% | -2.9% |
| USDBRL | 2024-02-14 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/31877-fx-weekly-summary-brazil-issue.md) | -0.5% | +0.5% |
| USDBRL | 2022-04-29 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/42055-fx-weekly-summary-brazil-issue.md) | +1.0% | -4.3% |
| DXY | 2022-01-07 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/43355-fx-weekly-summary-brazil-issue.md) | -1.1% | -0.2% |
| DXY | 2021-11-12 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/44257-fx-weekly-summary-brazil-issue.md) | +0.8% | +1.2% |
| DXY | 2024-02-14 | [FX Weekly Summary (Brazil Issue)](https://feedsoft.ai/events/31877-fx-weekly-summary-brazil-issue.md) | -0.4% | -1.3% |

## Sources

- stonex.com: https://www.stonex.com/en-us/insights/fx-weekly-summary-brazil-issue-2022-06-13/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.